It is known in the sewing machine art to provide a spool holder for a spool of thread on the frame of the sewing machine so that a supply of thread will be readily available to the operator. It is also known in the art to provide spool holders on the frames of sewing machines which are adjustable to various positions so that they do not protrude from the frame when the machine is folded and stored into a cabinet or the like. Such a spool holder is clearly illustrated in U.S. Pat. No. 3,444,833. In order to provide for relatively interference free flow of the thread from the spool holder through the various thread guides and ultimately to the needle, spool holders generally protrude away from the frame and cover of the machine so as to provide a minimum of interference with the flow of the thread therefrom. Also, supporting the spool holder away from the frame and cover enables the operator to have relatively easy access thereto for replacing the spool of thread on the spool holder when necessary. However, when spool holders are mounted on the sewing machine cover so as to protrude therefrom, it does present a problem when the machine is packed for shipping or when it is intended to be placed in a stored position in a sewing machine cabinet or the like. Unless the packer or the operator is careful when packing or moving the machine from one position to another there is a possibility that a protruding spool holder may be damaged or may be broken off from its supporting mechanism on the sewing machine cover. Further, since spool holders in themselves are of relatively lightweight construction, when machines incorporating a spool holder are packed for shipping there is a possibility due to rough handling during transit that such spool holders may be broken. It is a purpose of the present invention to overcome some of these problems.